Ohio Affordable Housing Valuation Calculator
A service offered by
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Ohio Capital Corporation for Housing offers this real estate tax calculator as a service to owners and managers of affordable housing properties. This calculator very closely mirrors provisions found in O.R.C. 5713.03 as it relates to the valuation of affordable housing properties in Ohio, as enacted in H.R. 33 in 2023. This calculator is applicable to the following types of affordable housing properties (or any combination thereof): Low Income Housing Tax Credit (LIHTC) properties; HUD Project Based Section 8; HUD 811, 202 or PRACs; or Rural Development 515, 521 or 538 properties.
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Please note that the capitalization rate used in this calculation is subject to change, as O.R.C. 5713.031(E)(4)(c) stipulates that a “market-appropriate, uniform capitalization rate” be used. As the administrative rules are currently in process of being clarified, the Ohio Housing Council is working to better understand how the cap rate will be determined for the purpose of this calculation. As required by statute, the capitalization rate will be reduced by one percentage point and then a “tax additur” is added to the capitalization rate to account for the millage rate for the specific location of the property.
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The methodology embodied in the statute assumes that operating expenses for the property (excluding real estate taxes, all project-paid utilities, required reserve payments, depreciation and amortization expenses) are calculated to be 48% of the gross rent potential for the property. If your operating performance does not align with this model and you find that the calculated valuation is unacceptably high, O.R.C. 5713.031(E)(4)(b) indicates that “these presumptive amounts may be exceeded with evidence demonstrating the actual expenses of the property.” Meaning, if the calculated valuation is too high, the statue allows an owner to approach the County Auditor with additional information to allow the owner to advocate for an alternate operating expense for inclusion in the valuation calculation. Forthcoming administrative rules will clarify how that process will work.
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Complete the form below and indicate with a Y/N if you know the effective millage rate for the location of the subject property. Click the ‘Calculate’ button once the form is complete. Based on your inputs, the calculator will return results indicating a property valuation with a corresponding real estate tax, based on the provisions found in O.R.C. 5713.03.
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